Greece Debt Rating Slashed On Restructuring Concerns

Ratings agency Standard & Poor’s has slashed its rating for Greek sovereign debts on growing concern over the country’s ability to finance its debts without restructuring, according to Reuters.

Ratings agency Standard & Poor’s has slashed its rating for Greek sovereign debts on growing concern over the country’s ability to finance its debts without restructuring, according to Reuters. On Monday, S&P lowered its debt rating for Greece two notches to B form BB-, which is lower by two and four levels than the ratings from rival ratings agencies Moody’s Investors Service and Fitch Ratings, respectively. The two firms have warned that downgrades are possible.

The move by S&P was linked to an “increased risk that Greece will take steps to restructure the terms of its commercial debt, including its previously issued government bonds,” and also added that more downgrades are possible. According to Bloomberg, the reduced rating is tied for the lowest rating in Europe with Belarus, and marks the fourth reduction since the beginning of last year. Nonetheless, the euro has lost gound in recent days but is up roughly 10% against the dollar since January, which some have seen as a vote of confidence in the region’s approach in handling the crisis.

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